Elevated Iran/Saudi tensions.

Elevated Iran/Saudi tensions. Disappointing Chinese language manufacturing Knowledge. Equities, Greenback decrease, Bonds & Metals Greater.

Financials: March Bonds are presently 25 greater, 10 Yr. Notes 13 greater at 126’10 and 5 Yr. Notes 9 larger at 118’19.2. Markets are experiencing a “flight to security” this morning in mild of the elevated tensions between Saudi Arabia and Iran after the Saudi execution of an Irani cleric. Chinese language manufacturing knowledge factors to a slowing financial system inflicting a 7% drop in Chinese language equities indices. We stay unfold lengthy 5 Yr. Notes/brief 10 Yr. Notes and can decide within the subsequent few periods whether or not to proceed holding this place,. We are also holding the lengthy June 2016/brief June 2017 Eurodollar unfold.

Grains: Mar. Corn is at present fractionally decrease at 358’zero, Mar. Beans four’four decrease at 859’6 and Mar. Wheat fractionally decrease at 469’2. I need to observe that with the weak Greenback this morning the Grains are placing on a disappointing efficiency. The lengthy KC Mar.
Wheat/brief Chicago Mar. Wheat is at present three’zero towards us this morning at four’four premium Chicago wheat. If this unfold doesn’t go premium KC within the subsequent week I’ll in all probability liquidate. Keep tuned.

Cattle: Stay Cattle presently look 25 decrease after a decrease shut on Friday regardless of the Dec. going off the Board 280 greater at 135.80. Feeders closed robust however look a bit decrease this morning. We stay brief the Feb. and can cowl on a 175+ level break if given the chance immediately. I really feel that this market at present has help round 132.00 and resistance round 140.00 and can attempt to promote the mixture (strangle) of the Feb. LC 132.00 put and 140.00 name for 375 factors if the chance arises The strangle settled at 335.

Silver: Mar. Silver is at present 15 cents greater at 13.95 and Feb. Gold 10. Greater at 1070.2. We proceed to carry a small lengthy place and shall be watching the current lows of 13.62 in Silver and 1046.00 in Gold as help.

S&P’s: Mar. S&P’s are at present 33.00 decrease at 2002.75. Poor Chinese language financial numbers have as soon as once more pushed this market under the 200 day shifting common and appears headed for a check of the December low of 1983.25. I’m a vendor on rallies oabove the 2015.00 degree.

Currencies: As of this writing the Mar. Euro is at present 22 larger at 1.0908, the Yen 80 greater at zero.8412, the Pound 28 larger at 1.4762 and the Greenback Index 30 decrease at 98.450. We stay lengthy the Yen (both futures cor the Mar. 85 name) and brief the Greenback Index. I’m presently recommending to both take income or use a protecive promote cease at break even ranges.

Elevated Iran/Saudi tensions.